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Common Questions—Insurance Companies
  1. What form do we use?
    Form 20-INS Oregon Insurance Excise Tax Return.

  2. What is the tax rate and minimum tax for insurance companies?
    Insurance companies are taxed the same as C corporations.
    C corporation excise tax filers pay the greater of calculated tax or minimum tax.
    C corporation income tax filers pay calculated tax. Income tax filers don't pay minimum tax.
     
    Minimum Tax

    For tax years beginning on or after January 1, 2009:

           Minimum tax table—C corporations only

    Oregon sales of filing group Minimum tax
    ​under $500,000 ​$150
    ​$500,000 to $999,999 ​500
    ​$1,000,000 to $1,999,999 ​1,000
    ​$2,000,000 to $2,999,999 ​1,500
    ​$3,000,000 to $4,999,999 ​2,000
    ​$5,000,000 to $6,999,999 ​4,000
    ​$7,000,000 to $9,999,999 ​7,500
    ​$10,000,000 to $24,999,999 ​15,000
    ​$25,000,000 to $49,999,999 ​30,000
    ​$50,000,000 to $74,999,999 ​50,000
    ​$75,000,000 to $99,999,999 ​75,000
    ​$100,000,000 and above ​100,000
     
    For tax years beginning prior to January 1, 2009:

    • C corporation excise tax filers—the minimum tax is $10.
    • Consolidated returnsthe minimum tax is $10 multiplied by the total number of corporations doing business in Oregon and included in the consolidated return.
    • Income tax filers don't pay minimum tax.

    Calculated tax

    For tax years beginning January 1, 2013 and later:

    • If Oregon taxable income is $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero).
    • If Oregon taxable income is more than $1 million, multiply the amount that is more than $1 million by 7.6 percent, and add $66,000.

    For tax years beginning on or after January 1, 2011 and before January 1, 2013:

    • If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
    • If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.6 percent, and add $16,500.

    For tax years beginning on or after January 1, 2009 and before January 1, 2011:

    • If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
    • If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.9 percent, and add $16,500. 

    For tax years beginning prior to January 1, 2009:

    • Multiply Oregon taxable income by 6.6 percent.

  3. When is our return due?
    Insurance Excise Tax Returns are due on or before April 15. When the 15th falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Do not file your return before the end of the year.

  4. What is the due date of my Oregon return when I have a federal extension?
    Oregon accepts the federal extension to extend the due date for filing your state return. If you have a 6-month extension of time to file for federal purposes, your Oregon return is due 6 months after the original Oregon due date. Be sure to include a copy of the federal extension when you file your Oregon return and mark the "Extension" box on the first page of the return. Do not send the extension to the department until you file your Oregon return.

  5. How do I file an "Oregon only" extension for my Oregon return?
    Oregon does not have an extension form. Use federal extension Form 7004 and remember to:
    • Complete the header information and answer questions 4 and 5. Leave the rest of the form blank.
    • Write "For Oregon only" at the top of the form.
    • Include it when you file your Oregon return. Do not send the federal Form 7004 to the department before you file your Oregon return.
    • Mark the "Extension" box on the first page of the Oregon return.

  6. Do we file a return with the Department of Revenue or the Department of Consumer and Business Services (DCBS) Insurance Division?
    File your excise tax return with the Oregon Department of Revenue. File returns to report retaliatory tax and transition tax with the Insurance Division of DCBS. Your Insurance Division returns are due on or before April 1. Tax year 2001 was the last year for which transition tax was due.
     
  7. Can we make our prepayments of all the tax to Revenue? Insurance Division?
    No. Each agency collects separate taxes. You pay excise tax to Revenue. The Insurance Division collects the retaliatory tax. Monies cannot be transferred between the agencies.
     
  8. When are our prepayments due?
    Revenue has four payments and Insurance Division has three, which are due as follows:

     
    Excise Tax
    (Revenue)
    Retaliatory Tax
    (Insurance Div.)
    April 15
    1st
     
    June 16
    2nd
    1st
    Sept. 15
    3rd
    2nd
    Dec. 15
    4th
    3rd
     
  9. Are any insurance companies exempt from the excise tax?
    Surplus lines insurance companies, fraternal benefits societies (exempt under IRC 501(c)(8)), and other insurance companies exempt for federal tax purposes are exempt from the Oregon excise tax. Profit from writing wet marine and transportation insurance is exempt and is subtracted from the taxable income of the insurer.
     
  10. How are Title Insurance companies treated under the law?
    Title insurance companies file the regular Form 20 and use the standard apportionment formula.
     
  11. How do I get a Business Identification Number (BIN)?
    You may have already been assigned a BIN if payroll taxes, workers' compensation, or unemployment tax payments have been made to Oregon. If you do not have a BIN, leave the BIN space blank on your return; we will assign a number.

  12. How do we amend our corporate return? What form do we use?
    File your amended return using a Form 20-INS. Be sure to check the "Amended" box on the front of the return. Also see Oregon Corporate Amended Returns.

  13. How many years can we carry back or carry forward a net operating loss (NOL)?
    Oregon allows NOLs for insurance companies to be carried forward for up to 15 years. There is no NOL carryback allowed. NOTE: ORS 317.665 ties insurance NOLs to Corporate Excise Tax computation under ORS 317.476.

  14. What is the statute of limitations for filing an amended return?
    Generally, the statute of limitations is three years from the date the return is filed or the due date of the return, whichever is later. For an amended return claiming a refund based on federal or another state's audit adjustments, the statute of limitations is generally two years from the date of the auditor's report, if that is later than the three-year statute. If you file an amended return with the IRS and the changes affect your Annual Statement and your Oregon taxable income, you must amend your Oregon return within 90 days of amending your federal return.

  15. How do I file a protective claim?
    An amended return may be filed as a protective claim to extend the statute of limitations for a refund request for a tax year while an issue is being litigated. Do not file a protective claim on an original return.

    Check the "Amended" box and write the words "Protective claim for refund" at the top. We'll also accept a written letter in place of an amended return. Include the same information in the letter as is required on an amended return. We'll hold your protective claim until you notify us the litigation has been completed.

  16. How long after an IRS audit may Oregon issue a bill to me?
    Generally, up to two years after we receive notice of a change to your federal return that also affects your Annual Statement. If you are audited by the IRS and changes that were made to your federal return affect your Annual Statement and your Oregon return, you should file an amended Oregon return Otherwise, Oregon may send you a billing notice up to two years from the date the department receives notice of a change.
     
  17. Can we file a consolidated return?
    Yes
    • A foreign insurance company not doing business in Oregon and not subject to Oregon tax, who is part of a group filing a consolidated federal return that also files a consolidated Oregon return, must be included in the consolidated Oregon return.
    • Domestic insurance companies not controlled by foreign insurers are subject to the consolidated filing provisions.
    • An inter-insurance, or reciprocal exchange insurer, may file consolidated returns with their attorney in fact, as provided in ORS 317.710(7).
    No.
    • Domestic insurance companies controlled by foreign insurers must file separate returns.
    • A foreign insurance company doing business in Oregon must file a separate Oregon return.
       
  18. Should the federal return be attached to the Oregon return?
    No. The Form 20-INS is not based on the federal return.
     
  19. What is the 'fire insurance gross premiums tax credit' for? Is there a carryover to other years for credit not used this year?
    The credit is equal to the amount of tax paid to the Insurance Division based on fire insurance premiums for the tax year. For example, you would enter a credit on Form 20-INS for the amount of tax shown on your State Fire Marshal report for the same year. See ORS 317.122 and ORS 731.820.
    There is no carryover.
     
  20. Do the amounts entered in the wage and commission factor come from the federal 1120-L or the annual statement?
    Enter the amount from the annual statement.
     
  21. Is the guaranty association assessment offset available starting in the year paid or in the year after it is paid?
    The offset is available starting in the year after it is paid per ORS 734.575 and 734.835.
     
  22. Are reinsurance premiums included in the insurance sales factor?
    Generally ORS 317.660 provides that the insurance sales factor does not include reinsurance accepted, and there is no deduction of reinsurance ceded. If the exclusion of reinsurance premiums results in an apportionment formula not fairly representing the extent of an insurance company's activity in Oregon, you may petition for the inclusion of the reinsurance premiums in the sales factor.
     
  23. Can insurance companies take a dividend deduction on Form 20-INS?
    No. There is no provision in ORS 317.655 for a dividend deduction in computing Oregon taxable income for insurers.

  24. Our insurance company recently changed ownership. We retained our name and ID numbers, and we still operate as the same company. Are we required to file a short-year return for Oregon?
    No, you will file an Oregon form 20-INS based on the full-year Annual Statement you filed with the insurance commission.

  25. Blue Company is bought by Green Company and they become part of Green. Blue no longer exists as a separate company from Green. Does Blue file an Oregon short-year return for the period of time prior to merging with Green?
    No, the income for the entire year is reported on Green's Annual Statement and Green will file an Oregon form 20-INS return. This return will reflect all of the income earned by both insurance companies as reported on the Annual Statement filed with the insurance commission.

  26. What is the interest rate for refunds and deficiencies? What penalties may apply to my return?
    See Penalty and Interest.

  27. How do I assemble my return and where do I mail it?
    See Assembling and Submitting returns.

  28. For questions regarding your excise tax, email: corp.help.dor@state.or.us.
     
  29. For questions regarding your minimum tax, email: minimumtax.help@state.or.us.
  30. For questions regarding your retaliatory tax and transition tax:
    Contact the Insurance Division at 503-947-7218 or by e-mail at web.inscomp@state.or.us